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Nifty regains 7900 in early trade; JSPL, Tata Power lose further after SC judgment on coal

Tuesday, 26 August 2014 - 10:20am IST | Place: Mumbai | Agency: PTI

Sensex has recovered the early losses made on the Street when the markets opened for trade today. Retreating from record highs, the benchmark BSE Sensex fell over 105 points in early trade today with metal, auto and power sector stocks leading the fall, triggered by negative domestic cues amidst a weak trend in Asian trade. However, at present it is up 17 points at 26,437 points. Nifty also held on to its 7900 level after slipping from it. Nifty is trading at 7906, down just 6 points.

Brokers said sentiments dampened after the Supreme Court yesterday held that all coal block allocations made since 1993 till 2010 have been done in an illegal manner, triggering widespread selling in metal and power sector stocks.

Jindal Steel and Power, which by some estimates will be the largest loser by the verdict, fell 6.81% while Tata power was down 3.5%. JSPL had already lost 13.97% in yesterday's trade.

IDFC, PNB, Ambuja Cements, ACC BHEL were also down between 1.5 and 2%. Analysts said apart from JSPL, Sesa Sterlite and Hindalco would also suffer. The former is trading 0.7% down in early trade while Hindalco is 0.5% up.

Cement, power, metals will be the largest losers in the verdict by the Supreme Court, though the final take on de-allocation is expected only on September 1. Till the the market could maintain a cautious stand.

Stocks of Maruti Suzuki, Tata Motors and Mahindra and Mahindra faced fresh round of selling pressure and fell between 0.78-1.18 per cent after the CCI yesterday slapped a penalty of Rs 2,545 crore on 14 car makers for violating trade norms in the spare parts and after services market.

Among other Asian markets, Japan's Nikkei fell 0.40 per cent, while Hong Kong's Hang Seng was trading 0.10 per cent lower in early trade. The US Dow Jones Industrial Average ended 0.44 per cent higher in yesterday's trade. 

With Inputs from PTI

 

 




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